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Calculate the WACC of a given company according to the following information. Common Stock: 200,000 shares common stock selling for $66 per share. The stock has a bet 0.8. Market: The expected return on the market is 10.5%, and the risk-free rate of return is 2.5%. Debt: 15,000 5% coupon bonds outstanding, $1,000 par value, priced at 95.5% of the par valu with 15 years to maturity. These bonds pay interest semiannually. Preferred Stock: 50,000 shares of preferred stock with a dividend of $260 per share it is

Calculate the WACC of a given company according to the following information. Common Stock: 200,000 shares common stock selling for $66 per share. The stock has a bet 0.8. Market: The expected return on the market is 10.5%, and the risk-free rate of return is 2.5%. Debt: 15,000 5% coupon bonds outstanding, $1,000 par value, priced at 95.5% of the par valu with 15 years to maturity. These bonds pay interest semiannually. Preferred Stock: 50,000 shares of preferred stock with a dividend of $260 per share it is

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Calculate the WACC of a given company according to the following information. Common Stock: 200,000 shares common stock selling for $66 per share. The stock has a beta of 0.8. Market: The expected return on the market is 10.5%, and the risk-free rate of return is 2.5%. Debt: 15,000 5% coupon bonds outstanding, $1,000 par value, priced at 95.5% of the par value, with 15 years to maturity. These bonds pay interest semiannually. Preferred Stock: 50,000 shares of preferred stock with a dividend of $2.60 per share. It is currently selling at $97 per share. The par value is $100. Tax bracket = 35% Please enter your answer as a PERCENT rounded to 2 decimal places. O 5.5890 O 7.4097 6.0688 6.5454 O9.9571 5.9393
Transcribed Image Text:Calculate the WACC of a given company according to the following information. Common Stock: 200,000 shares common stock selling for $66 per share. The stock has a beta of 0.8. Market: The expected return on the market is 10.5%, and the risk-free rate of return is 2.5%. Debt: 15,000 5% coupon bonds outstanding, $1,000 par value, priced at 95.5% of the par value, with 15 years to maturity. These bonds pay interest semiannually. Preferred Stock: 50,000 shares of preferred stock with a dividend of $2.60 per share. It is currently selling at $97 per share. The par value is $100. Tax bracket = 35% Please enter your answer as a PERCENT rounded to 2 decimal places. O 5.5890 O 7.4097 6.0688 6.5454 O9.9571 5.9393
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